The government's planned austerity package got a little lighter today as the Finance Ministry announced it will not after all try to raise 50 million euros with a bump in the tax levied on sugary sweets, snacks, soft drinks and ice cream.
In the background is an EU Commission effort to decide how different sugary snacks should be treated by tax authorities. From 2017 manufacturers will have to notify tax authorities about the sugar content of their products.
The Finnish Finance Ministry will look again at the sweet tax rise when that duty comes into force. The recent budget sought to gather some 370 million euros of extra revenue by tightening taxes on electricity, tobacco, sweets and fuel-that package is now some 50 million euros lighter.